Visa Delivers on its Promise to Make Internet Shopping a Safer, More Secure Experience

Board Approves New Commercial Incentives for Authenticated Payment; Consumers, e-Merchants to Reap Significant Benefits

SAN FRANCISCO, 9/4/2001

Continuing its leadership role in Internet payments, Visa International today announced that its Board of Directors has approved commercial incentives to promote the worldwide rollout of Visa Authenticated Payment, Visa’s most comprehensive e-commerce program. It will vastly improve the payment service for e-merchants, consumers and Visa members by enhancing convenience, acceptance and security.

With Visa Authenticated Payment, cardholders will be better protected while shopping online because Issuers will be able to authenticate their cardholders (for example, by checking a password or other means of identification entered by the cardholder) during the online payment transaction and notify the e-merchant in real time that the buyer is the actual cardholder.

The newly adopted commercial incentives provide protections and guarantees to participating e-merchants that were previously only available in the physical world (in a face-to-face transaction). By implementing Visa Authenticated Payment, e-merchants will be better able to sell and ship goods to any of Visa’s cardholders that carry over one billion cards worldwide. They will know that the goods they sell will be paid for since the cardholder’s issuer has validated him/her and approved the transaction. With these new protections, fraud and customer disputes will be significantly reduced and consumers will become increasingly confident about shopping online, leading to increased sales volume for e-merchants.

“We know that consumers and e-merchants want more security and better protection for shopping on the Internet, and we’re delivering that extra level of protection with Visa Authenticated Payment, our next generation of payment security,” said Malcolm Williamson, CEO of Visa International. “Consumers will know that they can shop safely and conveniently while preventing fraud on their card, and e-merchants will know they are dealing with a legitimate cardholder anywhere in the world.”

Visa is actively working with financial institutions and e-merchants around the world to deploy the program, which is expected to reduce disputed transactions by at least 50%. To ensure the successful implementation of Visa Authenticated Payment, Visa has partnered with more than 60 Internet Solution Providers and management consulting firms worldwide including Accenture, Cap Gemini Ernst & Young, IBM, Microsoft, and Sun Microsystems (see June 27 press release for complete list of vendors). All software solutions can be tested for compliance to the 3-D Secure protocol at Visa’s Compliance Testing Facilities in California.

Visa will continue to ensure that new and emerging technologies are complementary to its authentication program as the company extends secure payment solutions in a rapidly developing range of Internet-linked devices, including mobile telephones, hand-held computers, set-top boxes for cable and satellite television.

With Visa Authenticated Payment, Visa is providing the same level of security in the virtual world as Visa has in the physical world. The global program is integral to Visa’s continuing efforts to realize universal commerce (u-commerce), the ability to conduct commerce securely and conveniently, anywhere, anytime, and over any kind of device.

Advanced Technology, Rapid Deployment
In August, Visa’s International Board adopted 3-D Secure as the new global authentication technology, in addition to 3-D SET. 3-D Secure is a new, easy-to-implement, globally interoperable payment authentication solution that greatly improves overall system integrity. Visa’s global authentication solutions are flexible and can be tailored to the different regional market conditions. The solutions have been designed to preserve investments already made by Visa members. Visa Authenticated Payment allows for interoperability between the two technologies, ensuring that authentication benefits can be extended to all participating cardholders and e-merchants worldwide.

“With Visa Authenticated Payment, we’re delivering solutions that are easy and simple,” explained Philip Yen, executive vice president of e-Visa International. “Furthermore, we are delivering the business incentives that the market has demanded from us. These incentives will, without a doubt, drive worldwide adoption of Visa Authenticated Payment.”

Encouraging Merchant Compliance
Visa is reminding e-merchants that as of June 1, 2001, they are required to post their privacy policy and transaction security capability on their web site so that cardholders know what type of protections are in place when they shop online. Any new e-merchant will also be subject to this requirement via their merchant agreement with their Acquirer.

The Visa International Board has also approved a requirement that, effective January 1, 2002, web merchants must offer a secure, encrypted environment to cardholders during their online purchase. Any e-merchant participating in Visa Authenticated Payment satisfies this requirement. By April 1, 2003, Visa acquirers will be required to support 3-D Secure for their online merchants.

Consumer Benefits
Visa Authenticated Payment is Visa’s next-generation program that provides consumers with better protection when they shop online. Program benefits include:

• Greater confidence. Consumers will have more confidence knowing that Visa, their Issuer banks and e-merchants are working together to help ensure a secure online shopping experience. In fact, a recent study conducted by Harris Interactive for Visa International reveals that while most consumers are satisfied with their online purchasing experience, those who choose not to shop online cite security as a primary deterrent (the report included survey results from 6,600 consumers in six countries). Visa expects that both the occasional online shopper and “browser” will feel more confident and spend more online because Visa is taking steps to ensure a safe and secure shopping experience.

• Simple and secure online shopping. As Visa Authenticated Payment continues to be implemented around the world, consumers will feel confident that Visa is applying the maximum level of security to their payment transactions, regardless of payment method or device being used.

Visa’s Global Secure E-Commerce Initiative
Visa Authenticated Payment is a cornerstone of Visa’s Global Secure E-Commerce Initiative. Launched in June 2000, the initiative’s other core programs include Account Information Security and Best Business Practices. The Account Information Security Program establishes global standards for e-merchants, allowing them to better ensure the privacy and integrity of cardholder data on their Web sites. Information regarding these programs is accessible to merchants on the Visa Web site at www.visa.com/secured, including self-assessment tools to help e-merchants improve the security of their sites and ensure consumer privacy. The Web site also features Visa e-merchant data security best practices and consumer protection policies.

About Visa
Visa is the world’s leading payments brand and the largest payments system worldwide. Visa-branded cards generate almost US$2 trillion in annual volume and are accepted at over 22 million locations around the world. The Visa organization plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce - the ability to conduct commerce anytime, anywhere, over any type of device.